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Bankruptcy FAQ
By Susan Willets | June 12, 2008
Bankruptcy FAQ
What is bankruptcy? Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors.
Can I file bankruptcy to stop my foreclosure? This varies from state to state and also depends on the type of bankruptcy you are filing. If you are filing Chapter 7, there is little to no chance that you will get to keep your home; however, it may buy you some time to find new living arrangements. If you are filing Chapter 13, you may be able to keep your home by making new payment arrangements to pay off your debt over the next 3-5 years. For either situation, be sure to consult with your attorney for legal advice that pertains to your state.
What do I do to begin the bankruptcy process? To begin the bankruptcy process, you will need to construct a complete list of your debts, both past and present. You will need this documentation when filing the petition. You will then file these documents with the bankruptcy court and pay the filing fee.
Can one spouse file for bankruptcy without the other? Yes, but the other spouse may be held responsible for the debt. Research this option carefully before proceeding.
Who can file bankruptcy? Generally, any individual or business that owes money to a creditor can file for bankruptcy.
I have filed bankruptcy in the past, can I file again? Yes, as long as the required amount of time has passed. There are limitations to how soon a person can file for bankruptcy after filing previously, usually 4-7 years. Be aware of the consequences of filing for bankruptcy, especially multiple times as it can really damage your credit and ability to receive future loans, credit, etc.
Topics: Bankruptcy and Foreclosure, FAQ |